Tag: LITB

The S&P 500 is down more than 5 percent this year. Don’t bother telling that to the Internet and Catalog Retail sector. This small sub-sector of stocks is up a scorching 48 percent this year. That beats every other industry sub-sector on Wall Street. Here’s a look at the Top 10 stocks in the sector and their performance year-to-date:

Company

Ticker

YTD Return

Netflix

NFLX

117.0%

Wayfair

W

80.6%

Amazon

AMZN

67.8%

Expedia

EXPE

40.5%

CTRIP International

CTRP

37.5%

Nutrisystem

NTRI

36.9%

JD.com

JD

14.5%

1-800-FLOWERS

FLWS

11.8%

Petmed Express

PETS

11.6%

Priceline

PCLN

9.3%

Do any of the stocks above have more upside? Let’s take a look at their current share prices and compare them to the average analyst’s price targets for the stocks:

Ticker

Current Price

Avg. Target

Potential Upside

NFLX

$106.11

$119.30

+12.4%

W

$36.18

$51.44

+42.2%

AMZN

$532.54

$650

+22.1%

EXPE

$122.62

$128.96

+5.2%

CTRP

$66.77

$88.72

+32.9%

NTRI

$26.10

$31.15

+19.3%

JD

$28.91

$37.99

+31.4%

FLWS

$9.80

$14.25

+45.0%

PETS

$16.32

$13.67

-16.2%

PCLN

$1,265.68

$1,480.65

+17.0%

Wayfair and 1-800-FLOWERS both pop out. What has analysts so excited about these stocks?

The bullish case for Wayfair

Wayfair runs several online ecommerce sites geared toward home decor. Specifically, they operate Wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane. The company blew away analyst expectations in Q2. Quarterly revenue surged 66 percent year-over-year to $491.8. That bested analyst estimates by more than $50 million. On top of that, the company lost less money than analysts expected (woo-hoo!). They reported a $0.15 loss. Analysts were expected a non-GAAP loss of $0.29. Wayfair is at least growing its customer base. The number of active customers on their properties rose 53 percent year-over-year to 4 million. I’m on the fence here. The stock’s gone up so quickly, I’m wary momentum could snap the other way. I’d play it safe and buy shares in a company that’s actually profitable.

The bullish case for 1-800-FLOWERS

The online flower-delivery company, 1-800-FLOWERS also crushed earnings estimates for Q2. It beat estimates by posting a smaller loss than expected ($0.13 per share instead of $0.19 per share). That loss isn’t all bad. The company’s very seasonal and so is its latest acquisition, Harry & David’s. If it weren’t for Harry & David, the company would have posted adjusted earnings of $0.01 per share. That’s not enough to get me overly excited.

Of course, not every stock in the sector has fared so well. Here are the bottom five stocks in the Internet and Catalog Retail sector:

Company

Ticker

YTD Return

CNOVA

CNV

-61.8%

EVINE LIVE

EVLV

-61.7%

Groupon

GRPN

-60.6%

Light In the Box

LITB

-58.0%

Land’s End

LE

-50.2%

The overall market is down, but there are stocks out there that are out-performing. With a little homework, you can find them.